Key Highlights
- Shares reached a 52-week peak of $109.45, climbing 30% since January
- Third-quarter fiscal 2026 earnings per share reached $0.85, surpassing the projected $0.66; sales totaled $9.32 billion versus anticipated $9.17 billion
- Company upgraded annual EPS forecast to a range of $2.55-$2.65
- Analysts increased targets: DA Davidson ($110), Morgan Stanley ($115), BMO Capital ($130), Evercore ISI ($120), and UBS ($112)
- Chief Executive Brady Brewer divested 2,229 shares at $105.99 apiece on August 5th through a scheduled trading arrangement
Shares of Starbucks (SBUX) climbed to a 52-week peak of $109.45 on August 13, with the coffee giant’s stock hovering near $109.04. The performance marks a robust 30% gain since the start of the year and approximately 17% appreciation over the trailing twelve months.
The momentum stems from an impressive third-quarter fiscal 2026 financial report. The Seattle-based coffee chain delivered adjusted earnings per share of $0.85, significantly exceeding Wall Street’s consensus estimate of $0.66. Sales figures reached $9.32 billion, surpassing analyst projections of $9.17 billion.
One area of concern: total revenue declined 1.4% versus the comparable quarter in the prior year.
Domestic comparable store sales expanded by 8%, a metric that captured significant attention from market analysts. Leadership also increased their full-year earnings per share projection to a range of $2.55-$2.65, maintaining a trend of successive upward adjustments.
Wall Street Analysts Increase Valuations
The better-than-expected quarterly results prompted numerous firms to raise their price objectives. DA Davidson adjusted its target upward to $110. Morgan Stanley elevated its forecast to $115, emphasizing the robust comparable sales figure. BMO Capital established the most bullish projection at $130. Evercore ISI positioned its target at $120, highlighting improved margin projections and stronger North American sales forecasts. UBS raised its objective from $105 to $112 while maintaining a “neutral” stance.
Among 34 analysts tracking the coffee retailer, 19 recommend buying, 11 suggest holding, and four advise selling. The consensus price objective stands at $109.92, marginally above the current trading level.
BTIG confirmed its buy recommendation and $115 objective on July 31. Jefferies maintains a buy rating as well. Conversely, Scotiabank downgraded SBUX to underperform in May.
According to InvestingPro analysis, the shares may be trading above fair value at present levels. The price-to-earnings multiple currently sits at 62.35, while the dividend payout ratio reaches 142.53%. The 50-day moving average registers at $103.24, with the 200-day moving average at $99.84.
Institutional Ownership Expands
Mission Wealth Management approximately doubled its SBUX holdings during the second quarter, acquiring an additional 17,336 shares to reach a total of 34,723, valued at approximately $3.55 million. Multiple other investment firms similarly expanded their stakes throughout the quarter.
Institutional shareholders currently control 72.29% of the company’s shares outstanding.
Executive Share Transaction
Chief Executive Brady Brewer divested 2,229 shares at $105.99 per share on August 5th, generating proceeds of $236,251. The transaction occurred under a pre-established Rule 10b5-1 trading arrangement. Following the sale, Brewer maintains ownership of 75,135 shares. Company insiders collectively hold merely 0.03% of outstanding stock.
The coffee chain announced a quarterly dividend distribution of $0.62 per share, scheduled for payment on August 28. The ex-dividend date falls on August 14. This translates to an annual distribution of $2.48 and a yield of approximately 2.3%.
According to InvestingPro data, 19 analysts have increased their earnings projections for the forthcoming period.
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